Leading exporter of Specialty Chemicals with 87% topline secured


  1. 1VCI Chemical Industries Essentials
    1. 1.1 VCI Chemical Industries ISIN
    2. 1.2 VCI Chemical Industries Face Value
    3. 1.3 VCI Chemical Industries Total Share
    4. 1.4 VCI Chemical Industries Total Income
    5. 1.5 VCI Chemical Industries Profit After Tax
    6. 1.6 VCI Chemical Industries Promoter Holding
    7. 1.7 VCI Chemical Industries EPS
    8. 1.8 VCI Chemical Industries P/E
    9. 1.9 VCI Chemical Industries P/B
    10. 2.0 VCI Chemical Industries Market Capitalisation
    11. 2.1 VCI Chemical Industries Enterprise Value
    12. 2.2 VCI Chemical Industries Book Value
    13. 2.3 VCI Chemical Industries Intrinsic Value
    14. 2.4 VCI Chemical Industries Earnings Yield
    15. 2.5 VCI Chemical Industries Dividend Yield
    16. 2.6 VCI Chemical Industries Sector
    17. 2.7 VCI Chemical Industries Sub-sector
    18. 2.8 VCI Chemical Industries Category
    19. 2.9 VCI Chemical Industries Cashflow - Operations
    20. 3.0 VCI Chemical Industries Cashflow - Financing
  2. 2VCI Chemical Industries Growth
    1. 2.1 VCI Chemical Industries Compounded Sales Growth
    2. 2.2 VCI Chemical Industries Compounded Profit Growth
    3. 2.3 VCI Chemical Industries Return On Equity
  3. 3 About VCI Chemical Industries
  4. 4 VCI Chemical Industries IPO Details
  5. 5 VCI Chemical Industries Funding
  6. 6 VCI Chemical Industries Merger & Acquisition
    1. 6.1 VCI Chemical Industries Merger
    2. 6.2 VCI Chemical Industries Acquisition
    3. 6.3 VCI Chemical Industries Investments
  7. 7 VCI Chemical Industries Subsidiaries
  8. 8 VCI Chemical Industries Business Model
  9. 9 VCI Chemical Industries Revenue Segmentation
  10. 10 VCI Chemical Industries Product & Services
  11. 11 VCI Chemical Industries Assets
  12. 12 VCI Chemical Industries Industry Overview
    1. 12.1 VCI Chemical Industries Industry Statistics
    2. 12.2 VCI Chemical Industries Future Prospects
    3. 12.3 VCI Chemical Industries Government Initiatives
  13. 13 VCI Chemical Industries Awards & Achievements
  14. 14 VCI Chemical Industries SWOT
    1. 14.1 VCI Chemical Industries Strengths
    2. 14.2 VCI Chemical Industries Shortcomings
    3. 14.3 VCI Chemical Industries Opportunities
    4. 14.4 VCI Chemical Industries Government Threats
  15. 15 VCI Chemical Industries Rating
  16. 16 VCI Chemical Industries Detail Info

VCI Chemical Industries Essentials

Face Value


Total Share


Total Income

₹397.17 Cr

Profit After Tax

₹39.72 Cr







Market Capitalisation

₹70.40 Cr

Enterprise Value

-₹99.21 Cr

Intrinsic Value


Earnings Yield

180.55 %




Diversified Chemicals


Start up Funding

Cashflow - Operations

₹39.75 Cr

Cashflow - Financing

-₹19.01 Cr

VCI Chemical Industries Growth

Compounded Sales Growth

  • 0.30%

    1 Year

  • 2.09%

    6 Year

  • 10.80%

    11 Year

Pro Only

Compounded Profit Growth

  • 0.12%

    1 Year

  • 3.82%

    6 Year

  • 25.26%

    11 Year

Pro Only

Return On Equity

  • 3972.17%


  • 17.36%


  • 25.46%


Pro Only

About VCI Chemical Industries

  • VCI Chemical Industries (India) Pvt. Ltd. is engaged in manufacturing of Coal Tar Pitch & Distillates. The company has 1.1 Lac MTPA Coal tar distillery on 31.1-acre land in Kalinganagar, Orissa.
  • The company is supposed to be flagship project of Vikrant Group in it's strife to achieve complete backward industrial integration and unmatched operational efficiency across the industrial horizon.
  • The company is a direct subsidiary of Vikrant Group who has 71% holding in the same. The parent Vikrant Group is a leader in Disinfectant and other HCP (Health Care Product) and has strong presence across multiple states in Northern India.

  • VCI Chemical Industries IPO Details

The company has no plans for IPO as of now.

  • VCI Chemical Industries Subsidiaries

The company is a subsidiary of Vikrant Group (77% stake) with no subsidiary of its own. Its sister companies include:

  1. Vikrant Chemico Industries Pvt Ltd. (1 FMCG unit Kanpur)
  2. Vikrant Chemical Industries (2 FMCG units in Haridwar)
  3. VCI Chemical Industries (UAE) Ltd (Pitch melting unit)
  4. Vikrant Industries Pvt Ltd (Holding Company of VCI Chemical Industries (UAE) Ltd)

VCI Chemical Industries Business Model

With over 40 years of industry expertise, Vikrant Group is one of the oldest & most reputed premium phenyl brands in India and with backward integration the group is moving into the core chemical business as well. The Group is the largest player in the disinfectant segment in North India with over ₹ 32 Cr of revenue and a major presence in UP, MP, Uttarakhand, and Chattisgarh. The company has had a consistent revenue growth rate of 26% CAGR between FY 19 and FY 22 and is currently expanding east and west aggressively into Rajasthan, West Bengal & others.


VCI Chemical Industries Pvt. Ltd. is a subsidiary of Vikrant Group. The company’s primary business includes coal tar distillation and bulk sale of its products to its customers around the world. Promoter Holding of the company is 71% and the rest is free float/ held by private investors. The cost of the project will be borne by

·        Promoter’s Contribution (23.4%)

·        Unsecured Loan (Quasi Equity) (11.6%)

·        Term Loan (65.1%)



  • The company's operations are envisaged to enjoy tremendous locational advantage since 67% of the plant feedstock (Crude coal tar) will be sourced from steel plants within 120km and hence the lowest inbound cost than any domestic competitors. India is the world’s 2nd largest producer of crude steel and is forecasted to generate a surplus of 3 lakh MTPA coal tar by 2023. Feedstock requirement being only 1.05 lakh MTPA, security of supply is estimated to be 3x demand.
  • Ample availability of coal and private as well as government electricity feeders ensure 100% uptime of power; while being situated in a highly industrialized area of 1000 acres belonging to Industrial Development Authority of Orrisa, operations are expected to be hassle-free from local incumbencies. The plant will be situated next door to Tata steel Kalinganagar plant and connected by National Highway−215.


ProductOutput ChannelsParticulars
 Impregnated Pitch/MCMB & Binder Pitch
100% off-take to VCI Chemical Industries (UAE) Ltd (pitch melting plant)
 52000MTPA coal tar pitch @ ₹ 214 Cr. (estimate)
Creosote Oil and Naphthalene
50% of Naphthalene production and 100% of creosote oil to Vikrant Chemico Industries (FMCG Unit)
2100MTPA of creosote oil and 3200MTPA of refined Naphthalene for ₹ 25 Cr. (estimate)
100% off-take to Birla Carbon Renukoot Plant
26,000 MTPA of CBFS for a 5-8% premium over and above the international benchmark rates + freight. This premium is due to a 10-12 % higher yield of the end product of coal-derived CBFS vis-a-vis petroleum-based CBFS due to higher carbon content.
  •   Paradeep port is situated 120 km from the plant for export shipment in bulk or containerized. Hence the lowest outbound logistic cost of any domestic competitors.


  • VCI Chemical Industries Revenue Segmentation

  • Binder Pitch
  • Impregnated Pitch/MCMB
  • CBFS
  • Coal Tar Wash oil
  • Napthalene total
  • Fuel Oil
  • Light Cresote Oil
  • Light Oil
  • VCI Chemical Industries Product & Services

The company primarily deals in 2 product segments namely,

1. Coal Tar Pitch & Related Products:

o   Market:             

·        Aluminum grade pitch

·        Graphite electrode

o   Product

·        Binder pitch

·        Impregnated pitch / MCMB



2. Carbon Black oil /Carbon Black Feedstock:


o   Market:

·        Carbon black,

·        Dyes and pigment

o   Product:

·        Carbon Black Feedstock

·        Refined naphthalene

·        Crude naphthalene

·        Naphthalene balls

·        Light oil

·        Light creosote oil

·        Coal tar wash oil

·        Fuel oil

  • VCI Chemical Industries Assets

Total assets of the company as of 31.03.2025

Particulars (Amount in ₹ Cr.)
Property Plant & Machinery151
Cash and Cash Equivalents14

  • VCI Chemical Industries Industry Overview

Industry Statistics

1. Overview of Industry:

Coking coal is converted into metallurgical coal using a process known as high-temperature carbonization, which produces a byproduct known as coal tar, also referred to as crude tar. Through a fractional distillation procedure, which separates up to 300 chemical components from the feedstock depending on their boiling temperatures, coal tar distillates are extracted from the feedstock. With the rising use of electric arc furnaces (EAF) among smelters, coal tar pitch is the most preferred feedstock in the steel and aluminium smelting industry. 

  1. Coal Tar Pitch (CTP) INDUSTRY:
    • Aluminium grade pitch: It's a precisely formulated pitch made by carefully distilling coal tar. Used to create pre-baked anode components for the production of aluminium.
    • Impregnated pitch: used as a binder (Zero QI (Quinoline Insoluble) pitch) in the production of premium electrodes for the production of graphite. Additionally utilised for UHP grade electrodes and a few specialised defence applications.
    • Special pitches: Used as raw material for refractories, carbon composites, carbon paste, paints/ ultramarine blue and waterproofing, among others. Used in defence in long-range warhead missiles. Completely customised to meet the end-user industry specifications.


  2. DISTILLATE INDUSTRYCarbon Black is a form of elemental Carbon that is manufactured in a highly controlled process to produce particles and aggregates of varied structure and surface chemistry, resulting in many different performance characteristics for a wide variety of applications. Rubber grade Carbon Blacks are used to enhance the physical properties of the systems and applications in which they are incorporated. Naphthalene is an aromatic hydrocarbon generated from the process of coal tar distillation and is widely used as a pesticide. Cresote oil is used as feedstock for manufacturing phenyl and other health care product.
    • Tyre industry: Carbon Black plays a significant function in the development of the electrical and mechanical properties of high performance for a tough elastic polymeric substance such as rubber materials. Thus, Carbon Black is widely used as a key ingredient to manufacture automobile tyres, tubes and wheels, among others. While rubber is an essential ingredient to car tyres, around two hundred different materials, including special oils, carbon black, pigments, antioxidants, silica, and other additives help determine the specific characteristics of a tyre and comprise an industry on their own.
    • The Non-Tyre market includes all the uses of Carbon Black in rubber compounding outside of tyres and re-treading.
      • Major applications in this segment are automotive products and general rubber components for industrial, consumer, construction, and other types of equipment. Specific items include belt hose and fuel hose, (such as conveyor belts, transmission belts, v-belts, coolant hose, hydraulic hose, and fuel hose), among others. It also includes mechanical and industrial rubber goods (seals, gaskets, rollers, sheeting and membranes and wheels, among others).

      • Specialty Carbon Black is a highly versatile component for non-rubber applications. It is mainly used in key plastic segments including moulding, film pipe, fibre, and cable. Plastics are used in a wide range of applications in various key end-use industries including packaging, paints & coating, construction, electrical & electronics, and automotive.

      • Plastics application is the major growth driver accounting for almost 2/3rd volume share of the Specialty Blacks market. Increasing demand for electrical and electronic components, such as microwaves, ovens, phones, tablets, laptops, computers, television, music player, and fax machine, is expected to drive the plastics demand.

    • Naphthalene & Carbon Oil (Creosote & Light Oil) market has encountered recent growth mainly attributed to the increase in demand for naphthalene in several end-use industries in this region such as building and construction, textile, agriculture, and plastic among others. Naphthalene is widely utilized in the production of plasticizers, dyestuff, phthalic anhydride, and pesticide.

2. Classification of Industry:

The entire growth CTP industry can be traced back to 2 demand drivers: 

  1. Demand from the Coal Tar Pitch segment
    • primary consumers include the aluminium and graphite industry
  2. Demand from Coal tar distillate derivatives:
    • primary consumers include Carbon Black Oil / Carbon Black Feedstock consumers like the automobile tires industry and the non-tyre rubber industry.
    • Speciality Carbon black consumer market includes plastic segments including moulding, film pipe, fibre, and cable and also in end-use industries including packaging, paints & coating, ink & toner, construction, electrical & electronics, and automotive markets.
    • Aromatic Hydrocarbon (Naphthalene) and other Light Oil market include consumers in the clothing Industry, pharmaceuticals Industry, cosmetics Industry, phthalic anhydride, and pesticide industry.

3. Market Size:

    • Demand from aluminium smelters: The production landscape in the aluminium industry plays a major role in shaping the demand for CTP and is estimated to cater to 60-70% of global CTP supply. The annual production of aluminium is estimated at 67 million tons topping the list of non-ferrous metals in 2021 whereas the overall aluminium demand was at approximately 84.5 million tonnes. China is the largest aluminium producer in the world, followed by Russia and India. Production in India in FY 2022 is estimated to be 4 million tons, with production concentrated among public sector entity National Aluminum Company Limited (NALCO) and private sector players Bharat Aluminum Company Limited (BALCO), Hindustan Aluminum Company Limited (HINDALCO) and Vedanta Limited. The 10% compounded growth rate in aluminium production over the past seven-year period (FY 2015-22) reflects the growing demand for the metal from traditional as well as upcoming applications. This increasing demand for aluminium in turn has created a strong demand for carbon anodes and CTP from aluminium smelters.
    • Demand from graphite manufacturers: Graphite electrode is used widely in steel manufacturing, through the electric arc furnace route(EAF). This creates a direct correlation between steel production and CTP demand from graphite electrode manufacturers. With nearly 118 million tons of annual production in 2021, India remained the second largest producer of crude steel in the world, after China supported by graphite manufacturing infrastructure, dominated by Graphite India Limited and HEG Limited. Given the volume of crude steel produced in India, the annual volume of graphite electrodes consumed by EAF-based crude steel production units in FY 2022 is estimated to be nearly 31,000 tons.
    • Annual Consumption Pattern: Primary aluminium production in India has grown by a CAGR of 10% during FY 2015-22, while steel production through the EAF route has increased by a CAGR of 7% during the same period. The annual CTP consumption in India grew by a CAGR of nearly 9% during FY 2015-22. In FY 2022, the annual consumption of CTP in India is estimated to be 450 thousand tons. Despite the increasing demand for CTP, coal tar distillate products, domestic production is below demand. Drop in imports from China as well as strong capacity addition in the aluminium sector Middle East has opened up a lucrative opportunity for India as the other key player to export CTP in liquid form. 

  2. DERIVATIVE MARKET: Carbon black oil (CBO) / carbon black feedstock (CBFS) is the key starting material in the production of carbon black, which is used to manufacture automotive tires and tubes. Thus, the demand for CBO is directly linked to the growth in the production of automobile tires and tubes. Carbon Black consumption is predominantly driven by tyres and other rubber goods while non-rubber application commands a relatively small share. One of the key factors driving the market is the growing use of NSF (Naphthalene Sulfonate Formaldehyde) in concrete admixtures. However, the stringent regulations regarding VOC emissions might restrain the market in the distant future.
      • Demand scenario of Carbon Black: India is one of the fastest-growing automotive industries, and among the top ten in terms of the number of vehicles sold. By FY 2021 the total annual production of automobiles in India reached 22 million. The annual production of automotive tires in India is estimated to be in the range of 175 – 180 million units. The domestic production of carbon black is estimated to have reached 489 thousand tons per annum in FY 2022. 
      • Demand scenario of Naphthalene & Carbon Oil: The market for naphthalene is expected to register a CAGR of over 3% during 2016-2022. The Asia Pacific is the leading region accounting for the largest share of the naphthalene market in 2021 and holding nearly 35% of the market share. Naphthalene price reached more than 1100 USD/thousand tonnes in the month of March driven by a sharp rise in crude owing to the uncertainties in the global market stemming from the Russia-Ukraine war. Naphtha is expected to trade at around 700 USD/T by the end of Q3, Fy 22 and is estimated to trade at 750-800 USD levels in 12 months’ time.


4. Key drivers

  • Aluminium demand in India was traditionally driven by electrical products and metal packaging sectors. The annual production of aluminium in India is estimated to reach anywhere between 9.5 to 10 million tons by FY 2030 aided by the increase in electrification, and modernization of electric T&D infrastructure to meet increasing demand. The rising usage of aluminium owing to the requirement for improved efficiency in traditional vehicles as well as the need to balance weight and battery capacity EVs is envisaged to be a major driver for aluminium demand in the country.
  • The pivotal role played by steel in economic development, the improvement in industrial activity and construction acts as a driver for the demand for graphite electrodes. According to Anglo-Austrian mining company BHP Billiton, steel demand in India is expected to reach 170 million tons per annum by 2025. The Government of India has outlined an aggressive target of hitting 300 million tons of crude steel production per annum by 2030.
  • The pivotal role played by steel in economic development, the improvement in industrial activity and construction acts as a driver for the demand for graphite electrodes. According to Anglo-Austrian mining company BHP Billiton, steel demand in India is expected to reach 170 million tons per annum by 2025. The Government of India has outlined an aggressive target of hitting 300 million tons of crude steel production per annum by 2030.
  • This economic recovery was triggered by improving domestic as well as export demand. Indicators like improving construction activity, growth in automobile sales, steady increase in the Index of Industrial Production (IIP), and slow but steady growth in capital investment all support this growth assumption. As per the guidance by the Reserve Bank of India and various international financial institutions, the economic growth in India is expected to return to its pre covid period growth rate. The GDP growth for FY 2022 is expected to be approximately 9% while RBI has projected a growth rate of 7.8% for FY 2023.
  • Growth of manufacturing sector spending, owing to population expansion coupled with growing demand for polymers is anticipated to drive speciality carbon black market growth Increasing demand for lithium-ion batteries is anticipated to further boost the market growth. According to Invest India, the global electronic is estimated around US$ 2 trillion and India is the largest contributor holding US$ 118 billion in the Electronic Market and is estimated to reach US$ 125 Billion by 2025.

6. Hindrances:

  • The value of coal tar distillates imported to India is estimated to have reached, a record high of INR 83 Bn in FY 2022 in lieu of its exports which have risen by a CAGR of meagre 7% over the past seven years (FY 2015-22).

7. Peers :

The coal tar distillate industry in India is enriched with a lot of fragmented players catering to specific markets through their own small-scale production as well as trading activities. The 3 largest international competitors of the company are JFE chemical, OCI chemical and Rain Carbon (Rutgers) while the domestic landscape is dominated by giants like Himadri speciality chemicals ltd and Epsilon carbon p ltd.

Future Prospects

  • Expected Growth in CTP
  • Consumption Driven by the strong growth anticipated in the aluminium and steel sector, and subsequent growth in production of both metals, the annual consumption of CTP is expected to increase from just under 450 thousand tons per annum in FY 2022 to nearly 1 million tons per annum in FY 2030

  • Expected Growth in DERIVATIVES:
  • According to Invest India, the country is expected to become the world’s third-largest automotive market by 2026. The surging production of automobiles is increasing the demand for tyres and aiding the growth of the tyre industry. INR 20,000 crore of capacity addition in the tyre industry is proposed between FY2022 and FY2025. The global speciality carbon black market size was valued at USD 2.29 billion in 2021 and is projected to expand at a compound annual growth rate (CAGR) of 10.0% in terms of revenue from 2022 to 2030
  • The naphthalene market size is estimated to reach US$ 1.2 billion by 2027, and it is projected to grow at a CAGR of 3.5% during 2022-2027

Government Initiatives

  • The escalating export activities of vehicles such as tractors, buses, heavy trucks, and cars are also propelling the market growth. Moreover, the focus on increasing production by the Indian Government and the favourable Government schemes are augmenting the market growth. Government schemes such as Atmanirbhar Bharat Abhiyan — Self Reliant India — provide an economic and compressive package of INR 51,000 crores to promote manufacturing of the automotive in the country, this will further support tyre industry growth, thereby augmenting the Carbon Black market

VCI Chemical Industries Strengths

  • The promoters / directors of the Company has adequate experience in the chemicals manufacturing industry
  • The EPC Contractor, proposed by the Company, is M/s China Metallurgical Engineering & Project Corporation (MEPC), who is one of the leaders in supply of P&M in the sector having rich history of clientele like Tata Steel Ltd., Jindal Steel & Power Ltd., JSW Ltd., SAIL in Durgapur, Bokaro & ISSCO plant.
  • Company’s subsidiary based out of UAE has already obtained MoU for off-take arrangement of liquid pitch with M/s Aluminium Baharain and M/s Emirates Global Aluminium PJSC.
  • Marketing plan for overall 87 % of the end products are secured through long term contract to end customer or disinfectant unit of Vikrant group.

  • The site is well-connected and allows for easy access to raw materials being adjacent to Tata Steel Kalinganagar plant and requisite manpower required for plant operations.

VCI Chemical Industries Shortcomings

  • Critical statutory approvals, such as Environmental Clearance, Consent to Establish, Approved Building Plan etc. are currently awaited. Given the initial stage of the project, the same is expected. However, the Company is advised to procure the same as and when required during the process of project implementation to offset any statutory hassles.

VCI Chemical Industries Opportunities

  • Proposed project comes under the priority sectors as per the Industrial Policy Resolution (IPR) 2015- Odisha Government thus Company is eligible for the incentive benefits like land incentive, power subsidy, capital subsidy, special incentive etc. as per the policy.
  • Competitive advantage of the company is its low cost of production due to locational advantage, great proximity to end user, surplus availability of local feedstock, low competition in domestic market, exclusive contract with end user. Wise execution of business plan can become a salient growth driver.
  • Aluminum tops the list of non-ferrous metals produced in the world, with annual production estimated at 67 million tons in 2021 whereas the overall aluminium demand was at approximately 84.5 million tonnes. The exports of coal tar distillates reached INR 41.4 Bn in FY 2022, increasing by a CAGR of nearly 7% during the past seven years (FY 2015-22). The company has huge potential by garnering the export as well as domestic space by becoming a trustworthy suppler of feedstock for aluminium and steel industries.
  • Ukraine conflict has added to Indian geography advantage. Globally companies reciprocate India is prone to geopolitical risk as it remains neutral to these threats therefore customers are now more valuing there contact with India and resilient supply chain. Recent Economic partnership with INDIA by UAE and now GCC are 2nd biggest driver for all GCC customers to divert there long-term contracts to India. This will only garner benefit in term of expansion commitments from UAE customers without bargaining on prices


VCI Chemical Industries Threats

  • Change in Government policies for the Coal industry, or even on their customers’ industry may impact the Project operations.
  • The generic threat of geopolitical unrest, domestic and global economic slowdown, may impact operations/ demand for the finished products.
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